Is Ajax Engineering overvalued or undervalued?

As of 14 November 2025, Ajax Engineering's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued based on its key financial ratios, including a PE Ratio of 27.56, an EV to EBITDA of 20.36, and an EV to Sales ratio of 3.12.
In comparison to its peers, Ajax Engineering's valuation stands out, as Thermax has a much higher PE ratio of 60.32, while BEML Ltd also shows a very high PE at 56.6. This suggests that Ajax Engineering is trading at a premium relative to its competitors, which further supports the conclusion of overvaluation. Additionally, while the stock has outperformed the Sensex over the past week with a return of 5.5% compared to the Sensex's 1.62%, the longer-term performance metrics indicate a lack of consistent growth, reinforcing the overvalued status of the company.